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Citigroup says another bank made major payment errors



(Reuters) – A lawyer for Citigroup Inc. told a U.S. judge on Friday that he was aware of another major bank that recently made a larger payment error than Citigroup did in August last year when it sent $ 894 million of his own money to Revlon Inc.

Neal Katyal, the lawyer, announced at a hearing in Manhattan's federal court, in which Citigroup asked U.S. District Judge Jesse Furman to extend a $ 504 million freeze it has not been able to recover from Revlon. the lenders.

Mr. Katyal did not identify the bank, the size of the payment error or whether the error was corrected.

Citigroup appeals Judge Furman's decision of 16 February that 10 trustees, whose clients include Revlon lenders, can retain their incorrect payments.

Judge Furman accepted the asset managers' argument that Citigroup, as Revlon's lending agent, paid what they owed, and they had no reason to believe that a sophisticated bank would turn a blind eye.

Citigroup has said that lenders got a "windfall", and Judge Furman's decision may deter banks from making bank transfers in a "Finders, Keepers" market.

Mr. Katyal is a partner at Hogan Lovells and a former acting American lawyer. Citigroup hired him for its appeal. Catalog

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